Draheim was one of only ten state legislators invited to the White House for the executive order signing

Senator Rich Draheim applauded new federal rule changes, announced today, that “take historic steps to increase price transparency” in an effort “to empower patients and increase competition among all hospitals, group health plans, and health insurance issuers in the individual and group markets.” Today’s rule changes are the direct result of an Executive Order signed by the President last June that directed various federal agencies to change rules and regulations in order to improve price and quality transparency in health care. Draheim was invited to the White House for the signing of the executive order due to his leadership on health care price transparency in the Minnesota Senate. He was one of only ten state legislators to attend the event.

“These changes will impact nearly every American and their health care,” said Senator Draheim. “Everybody deserves to know what their care will cost before they receive it, and now that’s the standard that must be met.” 

Specifically, the rule changes require “hospitals to provide patients with clear, accessible information about their standard charges” for any items or services they provide patients beginning in 2021. Also, a rule change for “Transparency in Coverage” will increase access to price and cost-sharing information from insurers. This will allow patients to make comparisons and price-shop. Bills authored by Senator Draheim that made similar changes to empower Minnesotans were passed and signed into law this year.

“Since my first day in St. Paul, I have championed lowering the cost of health care,” added Senator Draheim. “And, we cannot lower the cost of care without knowing how much we pay in the first place. These new federal changes, along with the changes in state law that I championed, begin that process. It goes without saying, no one should ever have to spend months calling their doctor or hospital to get an explanation of their charges.”

During the upcoming legislative session, Senator Draheim will continue to champion his “Patient Right to Shop Act” that allows Minnesotans to compare the average charges for health care services. If an individual finds a health care provider that will offer a service or procedure at a lower price, they would share the cost savings with their health insurer.